Amazon Continues to Grow Dominance with $574,785 Million Turnover in 2023
Following an allegation of abusing its dominant position by antitrust authorities, Amazon continues to increase its market share, with a reported turnover of $574,785 million in 2023, representing a 12% growth from the previous year.
The company, which has long been targeted by antitrust laws, faced allegations of monopolizing the market, yet continues to show profitable growth its stocks.
Amazon’s revenue and profit figures have both surpassed market expectations, with its shares rising sharply on the stock market outside of normal trading hours.
Both the North America and international segments of Amazon’s sales increased dramatically, resulting in operating profits tripling to $36.9 billion in 2023, compared to $12.2 billion in 2022. The most profitable division continues to be Amazon Web Services (AWS), with an operating profit of $24.6 billion.
Amazon also generates a large portion of its revenue from direct e-commerce sales, physical stores, sales services for third parties, subscriptions, and AWS. In an effort to further diversify, the company has increased its advertising efforts on its shopping website and began running ads on Prime Video. Advertising sales rose 27% to $14.7 billion in the fourth quarter.
With a net profit of $30,425 million in 2023, Amazon has seen significant financial improvements, marking a record in operational terms.
Amazon’s CEO, Andy Jassy, stated that the company has made significant progress in terms of revenue, operating results, and free cash flow. Looking ahead to the first quarter of 2024, Amazon expects revenue to be between $138 billion and $143.5 billion, in line with analyst forecasts.
The company aims to continue improving customer experience and reducing service costs while maintaining fast delivery speeds for Prime members.
Amazon’s strong growth in 2023, coupled with its ambitious outlook in 2024, solidifies the company’s position as an industry leader, in spite of continued scrutiny by antitrust authorities.